Dubai Court Freezes $456M Linked to TrueUSD Reserves as Recovery Efforts Intensify

A Dubai court has frozen roughly $456 million connected to TrueUSD’s reserves, marking a major development in an ongoing dispute involving stablecoin operator Techteryx, fiduciary custodian First Digital Trust (FDT), and the Aria Group. The funds became illiquid in 2023 after being redirected into complex investment structures tied to Aria, a move that led to a significant shortfall and forced an emergency bailout from Justin Sun to keep TrueUSD operational.

According to FDT CEO Vincent Chok, the company fully supports Techteryx’s legal push to recover the missing funds. In an email to CoinDesk, Chok noted that the court has ordered Aria to disclose details about the assets in question—an important step toward determining where the funds are held and whether they can be reclaimed. Although FDT was not a party to the Dubai case, the situation is closely linked to its former role as fiduciary custodian of TrueUSD’s reserves.

Techteryx had previously directed FDT to invest reserves into the Aria Commodity Finance Fund in the Cayman Islands. However, filings in Hong Kong later alleged that approximately $456 million was instead transferred to Aria Commodities DMCC, a distinct Dubai-based Aria entity. There, the assets reportedly became locked in illiquid trade-finance positions, prompting the Dubai Digital Economy Court to freeze the funds while the investigation continues.

Chok emphasized that FDT acted strictly as an intermediary and executed every transaction under Techteryx’s explicit instructions. Meanwhile, the firm is also pursuing a defamation lawsuit against Justin Sun, who alleged in April that FDT was “effectively insolvent,” briefly causing its own stablecoin, FDUSD, to lose its peg. Chok stated that there are currently no public updates regarding the case.

This unfolding situation continues to draw attention across the crypto industry, as investors watch closely for outcomes that could impact stablecoin transparency, custodial responsibilities, and regulatory compliance moving forward.